With Google (GOOG) scheduled to report Q3 results after the close on Thursday, the Street is jockeying for position ahead of the print. In particular, there are some modest concerns about margins, with a number of analyst expressing concerns that an increased rate of hiring could weigh on results for the quarter. But overall, sentiment remains upbeat.
Here’s a rundown on today’s flurry of research on the stock from the Street:
- Wedbush analyst Lou Kerner this morning raised his rating on the stock to Neutral from Underperform, with a new target of $575, up from $525. “We are raising our rating and price target on Google based on our increasing belief that the secular tailwinds driving ad dollars online will continue to propel Google’s core search business,” he writes in a research note.
- Stifel Nicolas analyst Jordan Rohan repeated his Buy rating on the stock, while boosting his target to $600, from $560. Rohan also lifted his EPS and revenue estimates for the company, due to strong fundamentals in September and a weaker U.S. dollar. But he notes that “the biggest risk to earnings is the impact on margins of aggressive hiring practices and acquisitions.”
- RBC Capital analyst Ross Sandler this morning reiterated his Outperform rating and $600 target. Sandler sees modest upside to consensus revenue estimates, but thinks the company could disappoint on the EBITDA margin line due to rapid headcount expansion – he says the company added about 1,500 people in the quarter.
- Merriman analyst Richard Fetyko likewise repeated his Buy rating on the stock, but he also has concerns on margins, asserting that the consensus may not reflect the increased pace of hiring.
GOOG is up $4.14, or 0.8%, to $542.98.
No comments :
Post a Comment